Government's £100 energy payment slammed as 'nonsense' over who actually qualifies
A personal finance expert has criticised the chancellor's plans to give qualifying households £100 towards their energy bills, saying the policy is 'untargeted' and does not account for personal circumstances.
One of the biggest takeaways from John Healey's autumn budget was the announcement that anyone whose home falls between council tax bands A to D will receive £100 towards the cost of their energy bills this winter.
The one-off payment is expected to cost the government around £2.6 billion.
The Labour chancellor described the measure as giving British families 'breathing space' when it came to energy bills in the colder months – but one expert is less certain about how the policy will work in practice.
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Speaking to LADbible after the policy was unveiled, Scott Gallacher APFS, Chartered Financial Planner and Director at Rowley Turton, labelled the policy as 'nonsense', saying: "There's nowhere you are in in your own life in terms of income, wealth, family situation, etc."
Gallacher points out that the price of a property 35 years ago - which is how council tax bands are calculated - doesn't necessarily reflect the income and circumstances of its current occupants.
"I had a quick Google of properties," Gallacher began. "Essentially, if you own a one-bed flat or apartment just off Hyde Park [London] with £10,000 a year service charge, that's council tax B. So you still get £100.
"Compare that to Leicester, [where] you can be in a two-bed maisonette worth £230,000 and not get 100 quid.
"It's a bit of nonsense."
The financial planner isn't the only person who's sceptical of the move either, as Elite Renewables owner Tim Cameron-Kitchen labelled the move a 'sticking plaster' in comparison to rising energy bills.
"To some people it's going to feel more significant, but it really feels like a pretty minor sticking plaster," Cameron-Kitchen told LADbible.
Despite concerns raised by experts, the support appears to have been the major talking point of the budget, with the website allowing Brits to check their council tax band crashing soon after the policy was announced, due to the number of people who were checking their details.
How can I find out what my council tax band is?
Council tax bands in England and Wales are calculated depending on your property's value in 1991, which are then sorted into the following:
- Band A: Up to £40,000
- Band B: £40,001 – £52,000
- Band C: £52,001 – £68,000
- Band D: £68,001 – £88,000
- Band E: £88,001 – £120,000
- Band F: £120,001 – £160,000
- Band G: £160,001 – £320,000
- Band H: Over £320,000
You can check your council tax band here.
Brenna Cooper